On Monday (February 27), CoinShares, a leading Europe-based digital asset investment and trading group, reported on last week’s inflows and outflows for digital asset investment products (crypto ETPs and ETFs).
According to the latest report from CoinShares, there was a slight outflow of $2 million from digital asset investment products in the week ending on February 24th. However, the report suggests that this does not represent the broader negative sentiment in the market, as the largest inflows were seen in short investment products.
CoinShares noted that opinions on digital assets remain divided, particularly in the U.S., with outflows totaling $14 million. Analysts believe this could be due to investors’ fears that the US Federal Reserve will adopt a more hawkish stance than expected.
The report also revealed that Bitcoin had seen outflows for the third consecutive week, totaling $12 million. Conversely, short-Bitcoin saw inflows of $10 million, mainly confined to the U.S. According to CoinShares, this could be due to nervousness amongst US investors, prompted by recent stronger-than-expected macro data releases, and highlights the sensitivity of the market to regulatory crackdowns.
However, Ethereum has been more resilient to negative sentiment, with only $0.2 million outflows last week. The report also noted minor inflows in Polygon ($MATIC), Solana ($SOL), and Cardano ($ADA), totaling $0.6 million, $0.5 million, and $0.4 million, respectively.
Blockchain equities were not immune to the negative sentiment either, experiencing outflows of $7.2 million, mainly affecting growth-focused companies that remain vulnerable to expectations on interest rates.
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